Employees' State Insurance Corporation or ESIC is a scheme that allows members to have financial protection and safety against their health-related issues and eventualities. The scheme provides disability benefits, unemployment allowance, medical benefits, and maternity benefits to its members to cover their financial matters.
At one time, people were heavily dependent on the import of services and goods. These goods and services came to India from the developing parts or developed parts of the world. So, later India decided to develop its own labour and manufacturing working-class section.
The Parliament implemented the Employees' State Insurance Act, 1948, to ensure the workers' health, safety, and finances. It was the first law that the Indian government made to provide security for workers. ESIC includes permanent disability, maternity, any type of sickness, temporary disabilities, death due to employment, diseases at the workplace, etc. This scheme acts as a safety net for the workers against diseases and ailments. It also acts as group health insurance if an individual opts for it.
Benefits of the Employees’ State Insurance Corporation
Some of the benefits of the Employees’ State Insurance Corporation Scheme are as follows:
1️ Disability Benefits: ESIC ensures to pay the monthly wages to their employees in case of any injury that can result in temporary disablement.
2️ Medical Benefits: ESIC takes care of the individual's medical expenses by providing a good medical care facility.
3️ Sickness Benefits: ESIC ensures that the employee is getting a cash flow every month during their medical leave.
4️ Maternity Benefits: ESIC also helps member families welcome their baby into the household happily with financial stability.
5️ Unemployment Allowance: ESIC offers a monthly allowance to the employees for a maximum of 24 months in case of an untimely accident that leads to unemployment.
6️ Dependent’s Benefit: In case of untimely demise or injury at the workplace, ESIC provides a monthly payment to the surviving dependents to cover their monthly financial expenses.
Dos and Don’ts of the Employees’ State Insurance Corporation
There are several things that an employee must follow to ensure a smooth ESIC in a startup. Some of the dos and don’ts are as follows:
The dos of the Employees’ State Insurance Corporation are as follows:
- Individuals receive a Pehchan card that acts as a social security or employee’s visa when they become ESIC members. It is essential to protect the Pehchan Card from damage or theft.
- In case of theft or loss of the card, an individual must report to the Dispensary or Branch Office immediately. It will help to speed up the retrieval process.
- If an individual holds an ESI Registration Number and switches multiple jobs, they should inform their new employer to avoid clashes.
- Members must take referral procedures seriously in the firm.
- Individuals must follow all the ESIC’s instructions carefully before opting for it.
- There are several benefits of the ESIC that members receive based on the length of their contribution. For example, if an employee changes various jobs frequently using the same ESIC number, all the benefits related to the same ESIC number will be awarded to the individual.
- All the individuals also must follow the doctor’s instructions carefully.
- If an employee plans an out-of-station trip, they need to fill Form 105 and get the employer’s signature on it. This basic standard procedure helps the worker or individual get ESI facilities in other country regions.
The don’ts of the Employees’ State Insurance Corporation are listed as follows:
- The individual or the employee must ensure that a non-eligible person or an individual is included in the employee's Declaration Form to avail of the medical and other associated benefits.
- Employees or workers also need to ensure that Pehchan Card or ID proof is not tampered with or defaced in any condition. A tampered or defaced card doesn't work.
- All the employees and workers must ensure that they should not lend their ID proof or Pehchan Card to anyone.
- Individuals are required not to forge or fake any document from a doctor. It is a criminal offense and might create a problem for you.
- In case of death and birth in the family, employees and workers should delete or add their family members to avail the benefits of the scheme.
- The ESIC forms are supplied to all the employees and workers free of cost. So, all employees must ensure that they do not pay any sum of money for the ESIC form to the branch offices.
- All the employees and workers are also advised not to fake their illness and injury to claim the benefits of the scheme. It is a punishable offense, and employees might be required to pay the penalty for the same.
Final Words ??
To conclude, we can say that Employees’ State Insurance Corporation Schemes are helpful as they provide financial cover to the families in case of medical and health issues or contingencies. It also acts as a group health insurance and covers family members based on the plan.
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